Debt Consolidation Calculator
Current Debts (up to 4)
Comparison
| Current Debts | Consolidated Loan | |
|---|---|---|
| Total Balance | — | — |
| Total Monthly Payment | — | — |
| Total Interest | — | — |
| Months to Pay Off | — | — |
How to Use This Debt Consolidation Calculator
The mailer promises one lower payment, but will you actually pay less over time? Consolidation can cut your monthly bill and raise your total interest if the term stretches. I run both columns here before calling a lender back.
- Enter current debts. Up to four debts with balance, APR, and current monthly payment each.
- Enter consolidation loan terms. New loan rate and term in years for the combined balance.
- Press Calculate. Compare total balance, monthly payment, total interest, and months to pay off side by side.
Prefer attacking debts one at a time? Try the Debt Payoff Calculator. Estimating a standalone personal loan payment? Use the Personal Loan Calculator.
Debt Consolidation Formulas and Practical Applications
Current debts are modeled as independent paydowns at their stated monthly payments. The consolidated loan covers the sum of all balances amortized at the new rate over a fixed term.
Current total monthly payment
Current Payment = Σ Monthly Paymentdebt
Two debts paying $180 and $110 mean $290/month combined today.
Consolidated payment
M = P × [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ − 1 ]
Consolidating $9,500 at 10.5% over 5 years yields about $204/month—lower than the combined current payment, but compare total interest too.
When consolidation helps
Consolidation wins when the rate drop and shorter payoff outweigh a longer term. A lower monthly payment that extends the timeline can cost more in total interest even at a better APR.
Frequently Asked Questions
What does debt consolidation mean in this calculator?
Consolidation rolls all current balances into one new loan at the rate and term you enter. The calculator compares combined current payments against a single consolidated payment.
Are origination fees included?
No. The consolidated loan balance equals the sum of current balances. Origination fees, prepayment penalties, and credit score impacts are not modeled.
How are current debts paid down?
Each current debt is paid independently at its stated monthly payment until the balance reaches zero. Total interest sums across all debts.
Will consolidation always save money?
Not always. A lower rate helps, but stretching the term can increase total interest even if the monthly payment drops. Compare both columns in the results table.
How many debts can I enter?
Up to four current debts plus one consolidation loan. Leave unused debt rows blank.